Sun Pharmaceutical Industries Ltd. share price target

In this note, we explored the specialty pipeline of SUNP, examining products under development, the commercialized portfolio, and the competitive dynamics within each segment.

Sun Pharma Ltd. has announced that the Australian Therapeutic Goods Administration (TGA) has granted regulatory approval for Winlevi (clascoterone cream 1%). Winlevi is a topical treatment of acne Vulgaris in patients of 12 years of age and older.

High Conviction Stocks Idea

Sun Pharma reported a steady show with 10.1% YoY and 1.5% QoQ revenue growth, amounting to Rs 1,23,807 Mn (vs. our estimate of Rs. 1,25,050) in Q3FY24. This growth was driven by a 14.6% Y-o-Y (+11.9% Q-o-Q) rise in the US revenue (32.7% of total revenue) to Rs. 39,376 Mn (vs. our estimate of Rs. 37,432 Mn) while India revenue (31.1% of total revenue) grew at 11.4% Y-o-Y (-1.7% Q-o-Q) to Rs. 37,785 Mn (vs. our estimate of Rs. 37,311 Mn), and Rest of the World markets revenue (14.6% of total revenue) grew at 14.4% Y-o-Y (+4.7% Q-o-Q) to Rs. 17,797 Mn (vs. our estimate of Rs. 17,897 Mn).

Strong quarter with revenue/EBITDA in line and reported PAT 4% ahead of Bloomberg consensus

Sun Pharma reported an 11.3% YoY and 2.1% QoQ revenue growth, amounting to INR 121,924 Mn. This growth was driven by various factors, including India formulation sales up by 11.1% and emerging markets formulation sales up by 13.3% over the same period last year.

Sun Pharma (Sun)’s Q2FY24 performance was lower than our expectation (though in line with Street) due to higher overheads and lower sales of gRevlimid. Traction in branded generics business across India, emerging markets and RoW coupled with specialty business in US led to 11.3% growth in revenue.